Are you paying $80k for a $24k study?

I have felt compelled to write this article because, in the last few months, it has been brought to my attention that OPC has been executing work for clients at considerably lower costs than some of our competitors, particularly the larger international service companies and consultancies.

As an example, OPC recently concluded a small study for a UK based client for around US$ 24,000, where a large consultancy had quoted close to US$ 80,000. We looked at the work schedule and could not believe the price that had been quoted. We carefully went over the study – and priced as we would normally – on our standard day rates. The study was completed accurately, on-time and for less than one third of the price.

Our client was very pleased having got exactly what they wanted, for a significantly lower cost than he thought he was going to have to pay – and he suggested I should publicise the price differential. He had a realistic explanation: His was a smallish independent oil company – and didn’t have the resources to get lots of separate consultants to bid. The large consultancy probably realised this and thought they could price accordingly and “pad-in” overhead costs. I have seen other examples too.

When you are next looking to outsource a study, I urge you to ensure you get a quote from a smaller, independent consultancy such as OPC (and there are others out there too!) At OPC we ensure we offer high quality at the lowest cost – and I’m sure in the current low oil price environment you must want to get the best value for money that you can.

Please forward this article to whoever looks at subcontracting your studies. I am keen to see if there are any more examples of “inflated” pricing so if you have concerns over the amount you are/have been charged then please contact me for a confidential discussion.

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